IKEA Audit Report

This year’s environmental audit report is focused on IKEA, a multinational company responsible for production and sales of minimalism furniture and everyday appliances.

As of August 2015, IKEA operates 373 stores in 47 different countries. They are responsible for approximately 1% of commercial product wood consumption.

IKEA company is administering their duty fairly well in respect to product’s life cycle and meeting standard requirements, with the exception of sourcing and processing their materials. As of 2014, the IKEA group had 1,002 furnishing suppliers across the world with even more sub-suppliers, while the production is managed from Swedwood Group. The company claims that 41% of the woods and 76% of the cotton are from sustainable sources. These claimed sources all met IWAY standard, a code of conduct set by IKEA. However, looking at MALM , a single dresser from IKEA, contains minimum of 26 wood species from 18 different countries, which results in approximately 325 lines of data. For majority of the furniture, the actual source is very difficult to track as IKEA is refusing to reveal the information, as well as some sub-suppliers refusing or delaying the cooperation. The wood can be from old-growth or from illegally logged forest. IKEA does not deny the use of pesticides and chemical fertilizers; as well as not letting the public know how much they are using. Some furniture use raw materials such as pine, and the production process resembles typical log cuts, cuts, drying, and glue board.

IKEA has good control and initiative over their energy and water efficiency planning. All the refrigerators and dishwashers are ENERGY STAR® certified and kitchen taps use pressure aerator to reduce consumption.

IKEA saves energy by implementing renewable systems such as windmills, solar panels, automation building system to save electricity, and rainwater systems on the stores and warehouses.

Compared to 2010, the store is now 15% more efficient, while producing 42% of the energy they use from renewable resources.

89% of the materials are recycled, and 98% of the materials that make up the furniture are made from renewable, recyclable, or recycled materials. The company claims that they have stopped 84% of the product going into the landfill, and hopes to reach 90% by the end of 2015.

Waste materials from sawmill such as chips and sawdust goes to the pulp/paper industry while the bark is used as heating source for kilns. From the glue board and furniture factory, the waste is compressed and is sold to local and regional heating plant as bio-fuel source.

The company relies on efficient designing and packaging experts, with the goal of making the packaging as flat as possible, so when it comes to shipping or delivering, they have at least 64% fill rate. 58% of the time it is direct delivery from suppliers to store to lower CO2 emission.

IKEA is known for their hard to assemble and short-lived product lifespan.

Specific disposal impact of IKEA products are not yet known, due to majority of the disposed materials such as hinges, leftover screws or assembly materials, melamine veneer, and so on just contributes to the landfill mass.

IKEA’s furniture, with majority of them being wood, metal, and plastic, can all be recycled. They stopped using plastic bags and encourages the consumer to use their reusable bag or bring their own bag.